Amazon's Prime Air served less than 10% a month after first deliveries

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Amazon's Prime Air served less than 10% a month after first deliveries

Amazon Inc.'s AMZN Prime Air served less than 10 households a month after its first deliveries in California and Texas.

What Happened: An Amazon spokesman denied the lackluster performance of delivery drones, but said the company is planning to expand Prime Air services in the regions following Federal Aviation Administration approval, or FAA approval.

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One of the reasons Amazon has fewer drone deliveries is that these unmanned vehicles require employees to act as spotters. With each flight, the FAA no longer requires Amazon to have as many as six human beings.

The company laid off many employees now in California and Texas because they don't need extra hands to control the drones.

The second reason could be customers hesitating about the safety of these drone deliveries, and not without reasonable cause.

In September of last year a drone from Wing, a subsidiary of Google's parent company, crashed into overhead power lines, causing thousands of homes in the neighborhood to go without electricity.

According to a report by CNBC, Ark Invest founder Cathie Wood thinks that the e-commerce giant's use of automated robots will change its workforce in the upcoming years, while Amazon might not have had a good month.

Amazon is adding about a thousand robots a day. If you compare the number of robots Amazon has to the number of employees, it is about a third. By the year 2030, Amazon will have more robots than employees, according to Wood.

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